When filing 1045 (carryback NOL), is a 6251 (AMT) required to be attached?

Home Fairmark Forum Other Tax Topics When filing 1045 (carryback NOL), is a 6251 (AMT) required to be attached?

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  • #7425
    irc_nausea
    Participant

    I had a $43k net operating loss in 2019. Thanks to the CARES Act, I can carryback the loss five years. I’m preparing a 1045 to claim the tax refund and I have a question. Please refer to the following excerpt from the instructions:

    Attach copies of the following, if applicable, to Form 1045 for the year of the loss or credit.

    * Alternative Minimum Tax Net Operating Loss (AMTNOL) or Alternative Tax Net Operating Loss Deduction (ATNOLD) calculation.
    * Form 6251, Alternative Minimum Tax—Individuals, for each loss year

    I think the calculation referred to in the first bullet only applies to corporations, no? In the 2nd bullet, ‘each loss year‘ presumably means each carryback year. The line-by-line instructions for AMT confirm this…

    Line 18—Alternative Minimum Tax
    The carryback of an NOL… may affect or cause you to owe AMT. Individuals use Form 6251 to figure this tax. See the AMT instructions for the carryback year.

    Does anyone know if this means form 6251 must be attached to 1045, or only if it applies? It will be obvious from my entries that there’s no possibility of triggering AMT in the carryback year. If I am required to submit a 6251 with the 1045, I’ll have to hire a CPA. I’ve always prepared my own tax returns and I’ve even been known to dig into the IRC upon occasion. But the 6251 involves several concepts totally unfamiliar to me. Just reading the instructions gives me a headache!

    #7428
    kaneohe
    Participant

    Attach copies of the following, if applicable, to Form 1045 for the year of the loss or credit.

    This sounds like……….if it applies……..

    #7461
    Kaye Thomas
    Moderator

    That sounds right to me. If you didn’t have to file Form 6251 in the carryback years, and the carryback can’t possibly trigger AMT, then you don’t have to attach these forms. In theory, AMTNOL can apply to individuals as well as corporations, though I’ve never seen this in practice and it sounds like you don’t have to worry about it.

    #7549
    irc_nausea
    Participant

    Thanks for your feedback. I reviewed the 6251 instructions this morning. Although there are are some lines in the form I don’t even begin to understand, it looks like I /might/ be subject to AMT in the carryback year. RE: I took the standard deduction, which I see is excluded from AMTI.

    I decided to seek professional help with this since I don’t fully understand it. I found a website that specializes in AMT and NOL+AMT guidance, and the guy that runs it offers assistance for a fee.

    BTW, I also found a 2008 Treasury Inspector General audit report that addresses this very issue! Interesting read.

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